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Leaving the EU will have ‘no impact’ says Chartered Institute

By CreditMan Thursday, October 1, 2015

Almost a third of Credit Managers, those at the heart of managing cash through a business, believe that leaving the European Union will have little or no impact on their future trading.

In a survey of 400 members of the Chartered Institute of Credit Management (CICM) – three quarters of who conduct international trade – more than half (57 percent) said that leaving the EU would have no impact (31 percent) or were unsure of its consequences (26 percent). Only 14 percent said that the impact would be ‘serious’.

When asked whether their employers were in favour of remaining in the EU, 48 percent said yes, 12 percent said no, and a surprising 40 percent said that their company had not yet articulated an official stance.

Perhaps the most remarkable answers came from the question around whether current uncertainty regarding the EU in/out referendum was already having a detrimental effect on trade. Less than one percent said it was having a significant impact, 15 percent that it was affecting their business to some degree, but a huge 78 percent said that none of their trading partners had even mentioned it!

Philip King, Chief Executive of the CICM, says that the voice of the credit management community is an important one: “Credit Managers work across all sectors and industries,” he explains, “and the volumes and values of credit granted provide a primary indicator of the strength of the UK economy and actual levels of business being conducted.

“At the moment they are telling us loud and clear that leaving the EU is not as damaging to trade as some may make out, though whether that position changes closer to the referendum may be confirmed in another CICM member survey nearer the time. We will monitor the position with interest.”